Smart Pension Plan LIC: The state-owned Life Insurance Corporation of India (LIC) has launched a new pension scheme - the Smart Pension Plan. Under this single-premium plan, insured people will get a range of annuity options for single life as well as joint life types of annuities.
"Retirement isn’t the end of earning—it’s the beginning of financial freedom! With LIC of India’s Smart Pension, enjoy a lifetime of steady income and stress-free golden years," the company said on X - formerly Twitter.
This is a non-par and non-linked plan that offers several liquidity options.
Smart Pension plan LIC: Eligibility
According to the document shared by LIC, the minimum entry age is 18 and the maximum entry age is 100 years. However, this can vary depending on the annuity options. One must be very careful while choosing the annuity options because once selected, it can not be altered.
Smart Pension plan LIC: Minimum and maximum purchase
The minimum purchase under the LIC Smart Pension plan is Rs 1 lakh and there is no limit for maximum purchase.
However, the maximum purchase price allowed shall be subject to acceptance as per the Board Approved Underwriting Policy.
Smart Pension plan LIC: Minimum Annuity
Depending on the annuity mode, LIC has fixed the minimum annuity amount which is Rs 1,000.
| Annuity Mode | Minimum Annuity |
| Monthly | Rs 1,000 per month |
| Quarterly | Rs 3,000 per quarter |
| Half-yearly | Rs 6,000 per half year |
| Yearly | Rs 12,000 per annum |
Special Feature for NPs subscribers
National Pension System (NPS) subscribers have the option to opt for an immediate annuity.
Smart Pension plan LIC: Key features
- Single premium immediate annuity plan
- Wide range of annuity options to suit your needs
- Flexibility to choose from single life annuity and joint life annuity options
- Mode of annuity payments - yearly, half-yearly, quarterly and monthly
- Incentives for higher purchase price
- Incentive for existing policyholder and nominee/beneficiary of the deceased policyholder
Options Available:
o Liquidity Option
o Advanced Annuity Option
o Annuity Accumulation Option
Options available for payment of Death Benefit (if any):
o Lumpsum Death Benefit
o Annuitisation of Death Benefit
o In installments